Divorce is something couples seldom plan for, because it ‘does not sound right’ while they are in love. Despite this, the Vanier Institute of the Family found over 40% of marriages in Canada ended in divorce before their 30th anniversary. Attorneys Butterfield Law believe percentages vary between provinces.
For example, they say Quebec is highest with 49%, while only 17% of couples in Newfoundland and Labrador go their separate ways before the first 30 years have passed. However, divorce puts a squeeze on personal finances regardless of where we live.
How Long-Lasting Marriages Lock In Finances
We have no doubt the trend continues. This means Canadian couples have decades to intertwine their assets to the extent the distinction blurs. Joint property ownership is a good example of this. With foresight, joint title can be with right of survivorship that ensures a transition to sole ownership in the case of death of a partner.
Would that it were so simple to resolve joint property ownership in the case of a divorce. Relationships may have deteriorated to open acrimony by then, or at the very least deep mistrust. Both parties want to get on with it and develop separate lives. However, their money is trapped unless they can sell their home fast. They need to find a solution before embarking on a long, expensive legal case.
The partners therefore find themselves in a dilemma. On the one hand, they want to finish the relationship quickly. On the other, their half share after they sell will not be enough to purchase an equivalent residence. If they tell a property agent they want to sell quickly, they may end up accepting a valuation below fair market price. In a nutshell, that’s how divorce puts a squeeze on personal finances.
What is Fair Market Price and How Stonegate Can Help
A fair market price is ‘an estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would probably pay to a knowledgeable, willing, and unpressured seller in the market’. Hence, it cancels out what happens when divorce puts a squeeze on personal finances.
Stonegate Equity can be an ideal solution for couples going through divorce who want to sell their house for a fair market price. We are not estate agents and we do not charge commission. We may even be able to make a cash offer in a few days. This is so much better than expensive legal fees and you get your money sooner.